RSM324H1 Chapter 6: CHAPTER 6-4
15 Feb 2017
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Chapter 6 the acquisition, use, and disposal of depreciable property. The treatment of class 14. 1 and eligible capital property. Class 14. 1 consists of qualified capital expenditures made after 2016 plus the tax amounts of eligible capital property transferred to class 14. 1 on january 1, 2017. Tax treatment of class 14. 1 depreciable property: the full cost of an acquisition is added to the ucc of the pool. E. g. , incorporation costs in excess of ,000. In situations where a business has never purchased goodwill, it is deemed to have goodwill with a capital cost of nil and non-identifiable properties are added to this amount. Basic rules for eligible capital property (for 2016 only) Transfer of eligible capital property to class 14. 1: on january 1, 2017, eligible capital properties and cumulative eligible capital tax amounts of a business are transferred to class 14. 1. Transfer of cumulative eligible capital (cec): the cec balance on january 1,
